If you choose to pay the fee upfront but the deal doesn’t go through it may or may not be refunded, depending on the lender.Īlthough adding the arrangement fee to the mortgage means not having to stump up the initial cost, the downside means that interest is payable on it for the life of the loan, which could be up to 25 or 30 years. They are often charged as a percentage of the mortgage and can be as high as 5% – for example, £10,000 on a £200,000 loan.īorrowers can opt to either pay an arrangement fee upfront or add it to the mortgage at completion. According to Moneyfacts the average arrangement fee, among those deals that carry a charge, is £1,112.īuy-to-let mortgages tend to charge higher arrangement fees than residential deals and can run into thousands of pounds. But, for some of the most keenly-priced mortgage deals, the arrangement fee could be £2,000 or more. The fee typically costs between £500 and £1,500. Mortgage arrangement feeĪlmost all fixed rate and tracker rate home loan deals charge an arrangement fee, which is sometimes called a ‘product fee’. Here’s a round-up of what you can expect to pay. When you take out a mortgage, whether it’s for a home purchase, remortgage, or buy-to-let property, there will usually be fees and charges associated with the borrowing. You should always check with the product provider to ensure that information provided is the most up to date. While we work hard to provide accurate and up to date information at the time of publication that we think you will find relevant, Forbes Advisor does not and cannot guarantee that any information provided is complete and makes no representations or warranties in connection thereto, nor to the accuracy or applicability thereof. The compensation we receive from advertisers does not influence the recommendations or advice our editorial team provides in our articles or otherwise impact any of the editorial content on Forbes Advisor. These “affiliate links” may generate income for our site when you click on them. Second, we also include links to advertisers’ offers in some of our articles. This site does not include all companies or products available within the market. The payments we receive for those placements affects how and where advertisers’ offers appear on the site. This comes from two main sources.įirst, we provide paid placements to advertisers to present their offers. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive payment from the companies that advertise on the Forbes Advisor site. The Forbes Advisor editorial team is independent and objective.
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